Yelp, Inc. (NYSE:YELP) Wednesday reported quarterly earnings that topped analysts’ estimates and announced structuring plan to cut cost. Yelp shares jumped more than 10 percent to $35.74 in the morning.
The online business reviews company said profit was $2.1 million, or 2 cents a share, in the second quarter, compared with a loss of $8.1 million, or 11 cents a share, a year earlier. Excluding certain items, profit was 22 cents a share. The result beat analysts estimates. Analysts had projected a loss of 3 cents a share. Revenue rose 30 percent to $186.2 million, topping analysts’ estimate of $183 million.
“We continue to pursue our mission of connecting consumers with great local businesses everywhere, and our local business in the U.S. has accelerated this year. We have not yet achieved the same level of traction internationally and we have decided to redirect our resources towards the domestic opportunity for now. This was not an easy decision as it affects our valued colleagues abroad, however it allows us to sharpen our focus on the large, profitable and rapidly growing domestic business.” The company said.
The company also expected to cut around 175 of its employees, about 4 percent of its workforce, in U.S. and Canada. Yelp now has 4,350 employees. The company expected fourth-quarter revenue of $191-195 million, topping analysts’ estimates of $192.64 million.